Do you favor a Roth IRA, high-yield savings account, or life insurance as an investment tool?

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

@Edgar Perez, @Chad Nagel, @Anastasia Jordan the insurance for these types of properties is specialized. 

With builders offering in-house financing as low as 5.5% for investors/second home owners, and warranties on roofs and HVAC systems, I continue to support new construction as a solid choice for LTR buyers.

ADUs are really the best play for California right now because those particular laws are trending in favor of the homeowner with some limitations.

I would think you would need to prorate all the deductions such as taxes, insurance, depreciation, etc.  7.

Cover half the mortgage/utilities/insurance/taxes etc 4.

I know years ago a family that did have their treehouse insured. 

If they dont pay their car note, their insurance or even just small cell phone bills I know there is a zero chance they will take care of my prop OR pay me.

@Jamaal SmithWas the increase due to local tax increase in rates or due to valuationMost property taxes are increasing significantly as is insurance because of inflation - everything has gotten more expensiveYou can try and contest the assessment and see if it reduces taxes.